Rudd backs massive tax cuts

As I have said many times, most left wing parties do not share NZ Labour’s ideological hatred of reducing tax. I doubt one could find another party in the world that has had surpluses as high as NZ’s, and they’ve refused to lower personal tax rates.

Australian Labor leader Kevin Rudd has endorsed almost every element of Peter Costello’s massive tax cuts. The only difference is with the rate for those earning over $180,000.

Rudd has also offered tax deductions for laptops and Internet connections if used for home education.

And his long-term plan through to 2013-14 would have Labor flatten the tax structure going from four rates of 15%, 30%, 35% and 40% to just 15%, 30% and 40%.

So no matter who wins in Australia, within a few years there will be 0% income tax for those earning up to $20,000. Someone on $30,000 will pay only an average 5% tax.

And what do we have after years of massive surpluses? A worker on $30,000 paying almost four times as much tax as one in Australia.